MAILUP GROUP PRESENTS ”A MARKETING TECHNOLOGY STORY” · digital marketing channels, and more...

MAILUP GROUP PRESENTS

”A MARKETING TECHNOLOGY STORY”ABOUT SAAS, BIG DATA, ARTIFICIAL INTELLIGENCE, MESSAGING AND MORE

Investor presentation – June 2018

INTRODUCTION

AGENDA

STRUCTURE AND ORGANIZATION

GROWTH STRATEGY

KEY FINANCIALS

KEY PEOPLE & SHAREHOLDERS’ STRUCTURE

STOCK PERFORMANCE AND VALUATION RELATIVE TO COMPARABLES

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062

INTRODUCTION

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ABOUT US

MailUp Group is the leading industrial group active in the fast-growing

online marketing technology industry offering a broad spectrum of

solutions to its several thousand customers, with a focus on data-driven

omni-channel marketing automation.

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BUSINESS MODEL AND MAIN FEATURES

Email and mobile messaging delivery are the core activities, complemented by sophisticated email editing tools, innovative marketing technology solutions and professional consulting services.

Most of the above-mentioned services/solutions are delivered via in-house SaaS-based proprietary engines offering high quality, price competitiveness and generating sound recurring revenues cashed in upfront via subscriptions.

All tools/solutions are offered unbundled or combined into more structured workflows and are provided by the various companies of the Group in a highly synergic way.

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MARKET OPPORTUNITY

The Marketing Technology

sector “MarTech," (i.e., a cloud-

based ecosystem of marketing

strategies, solutions, and tools)

has expanded by 40% to 6,839

solutions this year, creating

new opportunities within the

sector. (Source: chiefmartech.com)

Email and SMS remain

respectively the most widely

used and fastest growing

digital marketing channels,

and more and more are used

in combined marketing

strategies. New channels

(Messenger, Whatsapp,

Telegram…) add more

opportunities.

In 2016, the global email

marketing market has totalled

at US$4.51 bn. It is expected that

the CAGR will rise at 19.6% and

that the market will reach

US$22.16 bn by the end of 2025.

In addition, the worldwide email

marketing spend will reach $9.1

bn by 2020.(Source: Transparency Market Research)

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MAIN FEATURES

Currently, MailUp Group’s services are delivered to ~18,600 customers in over

115 countries. MailUp is one of the few players offering its solutions to both

marketers (end-users) and developers. In 2017, more than 21bn messages

sent from clients.

Net Cash Position at €7.3m and improved cash conversion rate (i.e., EBITDA to

OpFCF at ca. 70%)

Thanks to its scalable and subscription-based business model, MailUp Group

is growing fast in double-digit space both for topline and profitability (in FY17

Revenues and EBITDA up +26% and 19% YoY respectively)

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HISTORICAL MILESTONES

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2004MailUp

was

launched

2006API

Introduction

2006SMS channel is

added to the

offered services

2014Developer

platform

2014IPO on AIM Italia stock

market, 3M raised.

(2013 Revenues

€6.6mn)

2015Acquisition of

Acumbamail(*), Agile

Telecom (**),

Globase(**)

2015Start to develop BEE

2016BEE is spun-off and

becomes an independent

business unit

2016Revenues

€21mn. MailUp

Enterprise launch.

2018New channels + M&A

2017€6mn raised (ABB).

Mailcult acquisition

MailUp was born (bootstrapped) in Italy back in 2002 and has rapidly grown, either

organically or by acquisitions, being now active in Europe, Americas, Asia and ranking

among top ten European players. MailUp is a public company listed since 2014 on AIM

Italia (SME Growth Market).

(*)Consolidated as of 2015FY(**)Consolidated as of 2016FY

STRUCTURE AND ORGANIZATION

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BUSINESS MODEL BASED ON A CONGLOMERATE APPROACH

Parent company (i.e., the holding) provides to all legal entities advisory in terms of business strategy, M&A and fundraising operations, IT and administrative activities as well as HR and legal support.

Companies within the group tend to share their experiences and knowledge with each other, providing valuable advantages to every member of the organization, making easier the finding of network opportunities among the other things.

Five business units

MailUp Group structure involves one parent company and principal subsidiaries

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MailUpEstablished as an email service provider vendor, the Italian subsidiary now delivers customers with its multichannel digital cloud platform, offering high-quality solutions with a "get what you want approach.“

• Market leader in the Email and SMS marketing & automation in Italy and among top five-ten players in Europe.

• More than one hundred employees

• ca. 21bn messages sent per year

• 11,000+ clients in 2018

www.mailup.com

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http://www.mailup.com/

Agile TelecomBased in Italy, as an outright wholesale SMS factory, the subsidiary is a telecom provider (OLO, Other Licensed Operator) that offers SMS delivery both promotional and transactional messages (One-Time Password/ Notifications/ Alerts and so on). Leading positioning in the SMS industry in Italy with ca. 380mn SMS sent per year, 3,700 customers and 14 employees. www.agiletelecom.com

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http://www.agiletelecom.com/

AcumbamailSpanish based email marketing provider, it also offers SMS packages and transactional services with a freemium business model suitable for micro-small businesses. It allows customers to create, send, and manage their single or multi-communication campaigns by also tracking real-time performance. In numbers, 400mn emails sent per year, ca. 2,500 customers and 7 employees www.acumbamail.com

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http://www.acumbamail.com/

GlobaseEstablished in Denmark, it delivers advanced digital marketing automation software for business and professional consulting services. It allows customers to create communication campaigns with data-driven personalization, audience segmentation (i.e., targeting a specific audience), all giving the possibility to track the effectiveness of the marketing campaign by analysing related statistics. In 2017 ca. 300mn emails sent, 124 customers and 6 employees.

www.globase.com

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http://www.globase.com/

BEE – BEST EMAIL EDITOROrganised according to the dual companymodel, with business team in USA and technological team in Italy, the American start-up based in Silicon Valley focuses its activities on the development and commercialization of the email editing tool BEE (i.e., innovative tool for the creation of emails). Today BEE is becoming the world leading standard chosen by 3,500+ developers/SAAS applications and 4,000 email designers in 100+ countries. www.beefree.io

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http://www.beefree.io/

Business unit

Revenues (€mn) EBITDA (€mn)

2016A 2017A △% 2016A 2017A △%

MailUp 10.245 11.7 14% 2.6 2.8 7%

Agile Telecom 9.7 14.7 52% 1.4 1.4 -1%

Acumbamail 0.5 0.7 40% 0.1 0.3 105%

Globase 1.7 1 -41% -0.1 -0.5 -367%

BEE 0.2 0.6 279% -0.1 0.0 81%

Holding 1.1 1.1 0% -1.3 -1.0 22%

Intercomp. elisions -1.8 -2.6 nm - - nm

TOTAL 21.6 27.3 26% 2.6 2.9 10%

Business units key financials

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Revenue breakdown by business line and by business unit

Email 34.5 %

SMS, 58.3 %

Email editor/BEE 1.8 %

Other 3.2 %Prof. services 2.2 %

MailUp 42.8 %Agile Telecom 49.4 %

Globase 3.4 %

BEE 2 %Acumbamail 2.4 %

MailUp Group: FY17 Revenues contribution by business unit

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€mn

MailUp Group: FY17 EBITDA contribution by business unit

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EBITDAFY17Globase HoldingBEEAgile Tel.

MailUp Acumbamail

€m

n

GROWTH STRATEGY

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INVESTMENT CASE

Exploiting a growing market momentum via organic and M&A development

leveraging acquired leadership and a strong cash position

Widening geographical footprint, and gaining further know-how via the acquired companies

Adding new modules/tools to the already diversified portfolio, focusing mainly on:- Customer Data Platform- Data Driven Omnichannel

Marketing Orchestration- Marketing Automation- Advertising- Personalization

Boosting ARPU and avoiding competition by commoditization effect

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Developing innovative in-house solutions, and exploiting BEE growth potential in

becoming the global market standards editor for email and landing page creation.

The startup based in Silicon Valley is achieving excellent results, with steady growth

in all business KPIs: customer acquisition, (ii) churn rate, (iii) growth.

Capitalising on R&D efforts to ride the Marketing Technology evolution

Scaling up from mere service provider to consultancy advisor in the MarTech field,

providing more and more professional services to current domestic customers

Expanding the set of integrated solutions with third-party companies, offering

developers the option to connect and synchronize platform with an external

database, CRM, CMS, e-commerce and any other external application

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• Sharing of best practices, experiences, code and knowledge

• Maintaining an unbundled approach to better address different segments / markets.

Pushing for higher intragroup synergies thanks to cross-fertilization

among group companies

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Maintaining a financially robust business model

Limited Capex absorption

Favorable working capital dynamics given the subscription-fee-business model based characterized by advanced payments and service deliveries in a subsequent stage

Absence of Bad debt risk

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Applying managerial best practices in revamping and optimize acquired assets from a

technological and financial point of view, delivering strategic thinking, technological solutions

and marketing know how. Two case studies:

Agile Telecomacquired back as of 2015 year-end, has recorded excellent results over

the last years. Since first-semester post-acquisition (1H16), the legal

entity has kept a steady and healthy growth, reaching a total turnover

of €9.7mn and €14.1mn in 2016 and 2017 respectively.

These crucial achievements are strictly related to the successful

implementation of intragroup synergies, which led to an overall

increase in the volume of messages, more than doubled with respect to

pre-acquisition ones.

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M&A case studies

Acumbamailacquired by MailUp Group back in August 2015, it achieved

outstanding results, with more than doubled monthly revenues

(+167% increase, passing from €22,400 in August 2015 to an

average of €60,000 during 2017) and a constant double-digit

quarterly average growth of paying clients (exceeding 2,500

units as of the end of December 2017).

However, behind this increase in numbers, the legal entity has

also highlighted a significant growth in clients quality.

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KEY FINANCIALS

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FY17: Double-digit growth and positive cash generation

Group Revenues up +26% YoY, with all legal entities/business lines growing healthy but for Globase, in the middle of a turnaround

Net Cash Position at €7.3mn, as a result of both a successful €6mn accelerated book building and of positive operating cash generation

EBITDA increased by +19% YoY, even if still negatively affected by (i) investment in the corporate structure, (ii) Globase and BEE reported losses

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INCOME STATEMENT (€MN) 2016 2017Net Revenues 21.1 26.4Other Revenues 0.6 0.9Value of Production 21.6 27.3COGS & SG&A -12.4 -16.7Labour cost(*) -6.8 -7.7EBITDA 2.4 2.9D&A -1.2 -1.6EBIT 1.2 1.3Net financial charges -0.1 -0.1Pre-Tax Profit 1.1 1.2Non-Operating Items 0.0 0.0Extraordinary Items 0.0 0.0Taxes -0.3 -0.6Minorities 0.0 0.0Net Profit 0.8 0.6Adj. Net Profit 0.8 0.6

BALANCE SHEET (€MN) 2016 2017

Net Fixed assets 15.1 15.0Net Working Capital -7.9 -7.1Severance pay and other funds 1.1 1.2Total Capital Employed 6.1 6.7

o/w Group Net Equity 7.0 13.9Net Fin. Position 1.0 7.3

MailUp Group:

Summary of

financials

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Q1 2018 RESULTS: CONSOLIDATED GROSS SALES

Thousands euro. Source: management accounts, provisional data, unaudited

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KEY PEOPLE & SHAREHOLDERS’ STRUCTURE

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MatteoMonfrediniPresident&CFO

NazzarenoGorniCo-founder,CEO

MicaelaCristinaCapelliIndependentDirector

ArmandoBiondiIndependentDirector

ü ProgramminganalystatAlessandroGuarneri’sAllMat Softü SystemengineersatNetworkS.n.c.,MonfrediniMatteo&C.

ü ICTMarketingandCRMConsultancyü AdjunctprofessorinMarketing,Consumerism&CommunicationatIULMUniversityü Co-authorofsomebooks

ü AnalystattheEquityMarket ListingoftheItalianStockExchangeü CapitalMarketsManagerofCentrobanca andUBIBancaü CapitalMarketsDirectorofBancaEsperia

ü Co-founderofAdEspresso,ü OneoftheEuropeanTopAngels(withnearly50investments)ü GuestContributorforVentureBeat,BusinessInsider,Entrepreneur.com

andFastCompany.

LucaAzzali11.7%

MatteoBettoni11.5%

AlbertoDomenicoMiscia11.7%

NazzarenoGorni11.7%MatteoMonfredini

11.6%

ZoidbergSrl7.7%

GiandomencioSica0.7%

FreeFloat33.4%

Matteo MonfrediniPresident & CFO

Nazzareno GorniCo-founder & CEO

Micaela Cristina CapelliIndependent Director

Armando BiondiIndependent Director









andFastCompany.

LucaAzzali11.7%

MatteoBettoni11.5%



11.6%

ZoidbergSrl7.7%


FreeFloat33.4%









andFastCompany.

LucaAzzali11.7%

MatteoBettoni11.5%



11.6%

ZoidbergSrl7.7%


FreeFloat33.4%









andFastCompany.

LucaAzzali11.7%

MatteoBettoni11.5%



11.6%

ZoidbergSrl7.7%


FreeFloat33.4%

• Programming analyst at Alessandro Guarneri's AllMat Soft• System engineers at Network S.n.c., Monfredini Matteo & C.

• ICT Marketing and CRM Consultancy• Adjunct professor in Marketing, Consumerism & Communications• Author of some books about Email Marketing

• Analyst at the Equity Market Listing of the Italian Stock Exchange• Capital Markets Manager of Centrobanca and UBI Banca• Capital Markets Director of Banca Esperia

• Co-founder of AdEspresso• One of the European Top Angels (with nearly 50 investments)• Guest Contributor for VentureBeat, Business Insider,

Entrepreneur and Fast Company.

• Founder and Chief Executive Officer of HAT Orizzonte Group • Former Head of Private Equity of Vegagest SGR

Ignazio CastiglioniIndependent Director

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Free float 34.1%

Nazzareno Gorni11.7%

Matteo Bettoni11.5%

Alberto Miscia11.7%

Luca Azzali11.7%

Matteo Monfredini11.6%

Zoidberg Srl7.7%

Shareholders

As of May 2018

FURTHER INFORMATION

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STOCK DETAILS

ListingMilan, Italian AIM

Outstanding number of shares 14.2 mn

ISIN ordinary shares IT0005040354

Market CapApprox. €33 mn

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CONTACTS

AddressViale Francesco Restelli, 20124Milan, Italy

Phone+39 02 71040485

[email protected]

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MAILUP GROUP PRESENTS ”A MARKETING TECHNOLOGY STORY” · digital marketing channels, and more...

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